finding-arbitrage-opportunities

What this skill does

# Finding Arbitrage Opportunities

## Overview

Detect and analyze arbitrage opportunities across cryptocurrency exchanges and DeFi protocols. Aggregates prices from CEX and DEX sources, calculates net profit after fees, and identifies direct, triangular, and cross-chain arbitrage paths.

## Prerequisites

- Python 3.9+ with `httpx`, `rich`, and `networkx` packages
- Internet access for API calls (no API keys required for basic use)
- Optional: Exchange API keys for real-time order book access
- Understanding of arbitrage concepts and trading fees

## Instructions

1. **Quick spread scan** on a specific pair:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py scan ETH USDC
   ```

   Shows current prices per exchange, spread %, estimated profit after fees, and recommended action.

2. **Multi-exchange comparison** across specific exchanges:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py scan ETH USDC \
     --exchanges binance,coinbase,kraken,kucoin,okx
   ```

3. **DEX price comparison** across decentralized exchanges:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py scan ETH USDC --dex-only
   ```

   Compares Uniswap V3, SushiSwap, Curve, Balancer with gas cost estimates.

4. **Triangular arbitrage discovery** within a single exchange:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py triangular binance --min-profit 0.5
   ```

5. **Cross-chain opportunities** across different blockchains:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py cross-chain USDC \
     --chains ethereum,polygon,arbitrum
   ```

6. **Real-time monitoring** with threshold alerts:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py monitor ETH USDC \
     --threshold 0.5 --interval 5
   ```

7. **Export opportunities** for bot integration:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py scan ETH USDC --output json > opportunities.json
   ```

## Output

- **Quick mode** (default): Best opportunity with profit estimate, buy/sell recommendation, risk level
- **Detailed mode** (`--detailed`): All exchange prices, fee breakdown, slippage estimates, historical spread context
- **Monitor mode**: Real-time updates with threshold alerts and trend indicators

See `${CLAUDE_SKILL_DIR}/references/implementation.md` for exchange fee tables and output format examples.

## Error Handling

| Error | Cause | Fix |
|-------|-------|-----|
| Rate limited | Too many API requests | Reduce polling frequency or add API key |
| Stale prices | Data older than 10s | Flagged with warning; retry |
| No spread | Efficient market pricing | Normal condition; try different pairs |
| Insufficient liquidity | Trade exceeds order book depth | Reduce trade size |

## Examples

**Quick ETH/USDC spread scan** - Find best buy/sell across all CEX exchanges:

```bash
python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py scan ETH USDC
```

Sample detection output:

```
  ARB OPPORTUNITY: ETH/USDC
  Buy:  Binance  @ $3,198.50  |  Sell: Coinbase @ $3,214.20
  Spread: 0.49%  |  Net Profit (after fees): 0.29% ($9.27 per ETH)
  Risk: LOW  |  Confidence: HIGH  |  Window: ~30s
```

**Triangular arb on Binance** - Discover circular paths with minimum 0.5% net profit:

```bash
python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py triangular binance --min-profit 0.5
```

**Cross-chain USDC opportunities** - Compare stablecoin prices across L1/L2 chains:

```bash
python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py cross-chain USDC --chains ethereum,polygon,arbitrum
```

**Calculate exact profit** - Detailed fee breakdown for a specific trade:

```bash
python ${CLAUDE_SKILL_DIR}/scripts/arb_finder.py calc \
  --buy-exchange binance --sell-exchange coinbase --pair ETH/USDC --amount 10  # 10 = trade size in ETH
```

## Resources

- [CoinGecko API](https://www.coingecko.com/en/api) - Free price data
- [CCXT Library](https://github.com/ccxt/ccxt) - Unified exchange API
- Uniswap Subgraph - DEX data
- `${CLAUDE_SKILL_DIR}/references/implementation.md` - Exchange fee tables, configuration, advanced arbitrage types, disclaimer